On Tuesday, Piper Sandler, a financial services firm, updated its outlook on EQT Corp. (NYSE:NYSE:EQT (ST:EQTAB)) shares, increasing the price target to $46.00 from the previous $41.00. The firm has also reaffirmed its Overweight rating on the shares of the natural gas producer.
The adjustment follows EQT Corp.'s first-quarter 2024 results and newly revised guidance. EQT has set its second-quarter 2024 production guidance at 455-505 billion cubic feet equivalent (Bcfe), averaging 5,275 million cubic feet equivalent per day (mmcfe/d) at the midpoint.
Additionally, the company has scaled back its full-year 2024 production guidance to 2.1-2.2 trillion cubic feet equivalent (Tcfe) from the prior range of 2.2-2.3 Tcfe. This revision includes plans to curtail 1 billion cubic feet per day (bcf/d) of operated volumes through May.
For the second quarter of 2024, EQT expects operating expenses to be around $1.49 per thousand cubic feet equivalent (mcfe) at the midpoint, which marks a 10% increase quarter-over-quarter. Despite this uptick for the quarter, the full-year 2024 operating expense forecast remains steady at $1.43 per mcfe.
Piper Sandler's updated model reflects the new guidance provided by EQT, taking into account the changes in production and operating expenses as outlined by the company. The firm's continued Overweight rating indicates a positive outlook on EQT Corp.'s stock performance in light of the recent financial updates.
InvestingPro Insights
As Piper Sandler revises its outlook on EQT Corp. (NYSE:EQT), it's beneficial to consider additional insights that reflect the company's financial health and market performance. EQT's market cap stands at a robust $18.13 billion, and the company maintains a P/E ratio of 26.45, which adjusts to 23.47 for the last twelve months as of Q1 2024. This suggests a market acknowledgment of its earnings potential relative to its share price.
InvestingPro Tips indicate that while analysts have revised their earnings downwards for the upcoming period, and the stock is considered to be in overbought territory based on the RSI, EQT has experienced a significant return over the last week. Moreover, analysts predict the company will be profitable this year, and it has been profitable over the last twelve months. These factors could be crucial for investors considering EQT's potential for sustained performance.
On the financial front, EQT's revenue for the last twelve months as of Q1 2024 stands at $4.42 billion. However, investors should note the company's revenue growth has declined by 61.08% over the same period, which may warrant further analysis. Despite this, the company's gross profit margin remains strong at 46.27%, indicating efficient control over its cost of goods sold.
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